Financial Daily from THE HINDU group of publications
Saturday, Feb 19, 2005

Port Info

Group Sites

Agri-Biz & Commodities - Sugar
Industry & Economy - Exports & Imports

ISEC buys raw sugar at $244/t

Harish Damodaran

New Delhi , Feb. 18

INDIAN Sugar Exim Corporation Ltd (ISEC) has managed to contract two large raw sugar import consignments aggregating about 1,07,750 tonnes on behalf of northern mills at $243-244 per tonne (Mundra port delivery), which is $13-14 per tonne below the going rate.

According to an ISEC official, the first Panamax vessel carrying 60,000 tonnes, is expected to arrive at Mundra around March 6, which will be followed by a Handymax cargo of 47,750 tonnes a couple of days later.

"We have chosen the Mundra port because it has a draft of 16 meters, which makes it possible for large vessels to call directly at the berth. The Kandla port, on the other hand, has a lesser draft of about 11.2 meters, which requires lighterage operations, involving anchoring the vessel at mid-sea, from where the cargo has to be offloaded to smaller vessels. This exercise entails additional costs," the official said.

The official added that by importing in bulk and taking delivery at Mundra (thereby saving on lighterage), while simultaneously achieving a discharge rate of over 10,000 tonnes per day, "we have been able to contract imports at $13-14 per tonne below the prevailing rate along with six months credit".

He claimed that even in an earlier consignment of 46,000 tonnes that was discharged only last week at Kandla, "we had managed to achieve a single day's discharge of 12,600 tonnes (a record for any commodity), resulting in dispatch money savings of $1,17,000".

During the 2002-03 and 2003-04 sugar seasons (October-September), raw sugar imports into the country amounted to 1.24 lakh tonnes (lt) and 5.53 lt, respectively. This entire quantity was brought in by South-based mills, barring about 50,000 tonnes by Dhampur Sugar. But in the current season, a host of northern mills, besides Dhampur, have joined the bandwagon.

Dhampur alone has imported two lt this season, with other large northern importers being Simbhaoli Sugar (74,000 tonnes), Triveni Engineering (15,000 tonnes), Mawana Sugars (13,000 tonnes), Oudh Sugar (10,000 tonnes), KM Sugar (10,000 tonnes) and Daurala Sugar (9,000 tonnes).

Total imports during the 2004-05 season are expected to be around 20 lt, which, along with estimated domestic production of 120-125 lt, will stabilise domestic supplies, obviating the need for any white sugar imports, the ISEC official said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Kerala: `Excess' rain in 8 dists

ICAI plans standard for agri accounting
S. Asia fisheries sector loss at $520 m: FAO
Rubber steady on covering purchases
Corporate battle for sugarcane intensifies
ISEC buys raw sugar at $244/t
Tea exports up a tad
Drive to help women SHGs become plantation owners in Nilgiris
Kerala: Water levels recede in major reservoirs
Karnataka Gold Festival from April 4
Castorseed output seen increasing 12 pc
Imports from Guatemala keep cardamom depressed despite thin arrivals
Kamal Nath's help sought on pepper imports
Pungent deal

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line